painting & decorating
2015 saw big changes in the paint channel,
most noticeably with Dulux disappearing
off Mitre 10 paint shelves and the launch of
Valspar. So we took to the streets and the
paint counters to see if we had reached the
tipping point and if so who was missing
out? Terry Herbert reports.
FOR THE SAKE of this feature we decided to go to one catchment
area and ask the paint experts at the retail coal face what effect
Valspar was having on their business.
Drive south from Auckland’s CBD, hang a left at the Ellerslie
Panmure Highway and you will reach Mt Wellington or at
least what’s left of it after decades of quarrying. This fulcrum
suburb sits ungainly on the cusp of other suburbs that socioeconomically cannot be more opposed.
From the state houses and decile One schools of Point
England to working class Mt Wellington, swinging north to the
loftier climes of St Heliers, Glendowie and the private schools
and mansions of Remuera, it’s a touchstone for our economy.
Even mid-week as we approach the Bunnings paint counter
there are customers asking earnest questions and the staff are
busy. When he gets a break a broad smiling Matt Murphy,
Bunnings Paint Specialist, shares his experiences since the
launch of Valspar at Mitre 10.
“The introduction of Valspar was good for us,” beams Murphy.
“We saw a definite lift in Dulux sales. As the most obvious Dulux
outlet for miles around we actually had customers coming in
here looking for the brand.
“We’re selling good volumes of the Dulux Wash & Wear so I
guess the advertising must be working. We get customers from
all the feeder suburbs. Just look in the car park at the BMW X5s
parked next to the 20 year-old people movers.
20
NZHJ | FEBRUARY 2016
“We stock British Paints and PPG as well. We continue to see
steady sales of these brands. These are also good paints so the
customer still has choice when it comes to quality paints. We
keep our Spring brand as a price fighter.
“In this store we get more DIYers. The weather hasn’t been our
friend but we’re selling good volumes.”
Less than 600m away, soft left at the Panmure roundabout and
we’re at Pleasant View Road, where a sizable Guthrie Bowron
store straddles a corner site.
Director, Ishwar Sadhu, says matter-of-factly: “The
introduction of Valspar has not made a noticeable change to our
business. It hasn’t affected us. We sell Dulux, Guthrie Bowron,
Wattyl and some Taubmans.
“We are a Dulux Trade Centre. We keep a separate Dulux till
(cash register) so it’s easy to track sales. What I can say is that
Dulux have become far more aggressive with their promotions.
“The new Dulux Wash & Wear promoted by those two from
MythBusters have lifted awareness. Sales are going very well.
Our split here is 60% trade and 40% retail. Overall it’s business
as usual.”
BIG BOXES SEEM TO BE BREEDING
We drive back along the Ellerslie Highway and turn right into
Lunn Avenue where all the big boxes (not just hardware) seem
to be breeding.
An orange box looms large. Even mid-week the car park is
largely full. Inside the Mt Wellington Mitre 10 MEGA we find
paint specialist Ayden Jacobs behind the counter where he
begins by telling us candidly: “Yes we did have early teething
problems with Valspar’s automatic tinting system but that’s all
sorted. If the counter is busy it is faster, but the main reason is to
avoid human error.
“Our catchment area takes in St Heliers, Glendowie and
Remuera. We get far more DIYers than trade coming in here. I
can’t give you figures but, when Dulux was taken off the shelves
and Valspar first came along in August, we barely noticed any
drop in sales.
“Resene has always been a strong brand here and we did see
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FEBRUARY 2016 | NZHJ
21
painting & decorating
Big three
media spend
DULUX
$3,761,716
VALSPAR
$2,461,505
RESENE
$4,721,024
The clash of the Titans
The paint market really is a clash of the titans. To be able to
express that and find out just how much Resene, Dulux and
latecomer Valspar spent in advertising in calendar 2015 we were
allowed a sneak peak at a recent version of Nielsen’s Competitive
Advertising Spend break down.
These figures are rate card and do not take into account
the various Volume Incentive Discounts that media agencies
negotiate with the media channels. Typically, advertisers spend
less than rate card.
These gross figures include all media which covers Television,
Radio, Newspaper, Magazine and Online. The biggest media
at 80%+, by dollars spent, is by far television. Proof that our
watching habits haven’t changed too much.
Total spends are as follows:
• Resene $4,721,024
• Dulux $3,761,716 (includes Cabot’s $780,651)
• Valspar $2,461,505 (includes Wattyl $180,538)
Resene and Dulux spent throughout the year. Valspar spent a
whopping $2,264,142 in October and November alone. For these
months their chameleons dominated the media.
During the months of September to December 2015, Dulux
countered Valspar’s launch with their Mythbusters Wash & Wear
campaign spending $1,624,085 on this product launch alone.
www.nielsen.com/nz
22
NZHJ | FEBRUARY 2016
a slight lift in sales. A lot of people will come in here and walk
passed the other brands to get their Resene. The Save the GST
Sale has helped keep those sales flowing too.
“We’re starting to see a big lift in Valspar sales now, especially
with the advertising. It’s hard to escape the Valspar chameleons.
Initially in the first summer months, we had lots of Cabot’s deck
stain sales and the new applicator helped too. We get the big
demand for exterior paints later in summer.”
MOVING RIGHT ALONG…
Just two asphalt car parks away, separated from the MEGA by a
shiny, glass-covered New World is a very large blue PlaceMakers
box. Here you see more SUVs and utes and sunburned men in
shorts and work boots. Inside, the lighting is dimmer and the
atmosphere is more serious. It’s Men at Work.
Placemakers paint specialist and team leader, Mark Cooper,
is the human embodiment of all that trade nous. His long, spare
frame and searching looks leaves no doubt that here is a man
who knows the trade and knows his paint.
In his opening volley he tells us: “The mix here is 60/40 in
favour of tradies. It was great for them when they were working
“Has the switch in the paint brands
changed anything? Maybe not…”
on Stonefields, which is right across the road. But now I get
them coming here from all over.
“I was a commercial painter before joining Placies and (laughing)
some of the boys call me the paint guru. I’ve been in the paint game
for a very long time and as team leader I train the paint staff.”
When I ask him about what effect Valspar is making on his
sales he snorts derisively. “We carry big accounts here. Usually
we estimate an entire project and often that includes paint, and
accessories. We look after the trade here and they look after us.”
And does he consider the Valspar auto tint system a threat?
Again he makes that derisive sound. “Automatic tinting systems
are nothing new. Dulux introduced one years ago. I’ve been
colour matching by eye for years and I haven’t had a complaint
yet. We’re busy at my counter and that’s not going to change.”
Snuggled behind and just north of Placemakers Mt Wellington
is the Resene ColorShop at 108 Lunn Avenue. We put the same
Valspar question to Store Manager, Hayley King: “I can only
speak for this store and everything is the same. We didn’t notice
any change,” says King with a shrug.
“Over the years Resene have invested heavily in product
development and brand awareness. We also like to pride
ourselves that our staff here have more product knowledge than
staff at the big boxes. We’re the paint specialists and consumers
know they can trust us. We sell solutions, not paint.
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painting & decorating
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TALKING TO THE PAINT BRANDS
So, if we can believe the paint specialists at the big boxes, sales
of the other major brands have not noticeably changed. So is
someone missing out? We took this question to the smaller,
local paint manufacturers.
Robin Wright, Managing Director Coating Technologies Ltd
(Cotec) was forthright and almost philosophical in his response:
“Yeah 2015 was just OK, it certainly wasn’t a stellar year. It’s
quite a complicated subject.
“I believe there’s plenty of business out there, we just need a bigger
share. The outlets and distribution is difficult for us. Obviously the
big boys want to protect their markets and their distribution chain
which makes it difficult for us to get into the big stores.”
I ask Wright how he intends to grow business. “Because we’re
a small company we’re not going to drive the market. We find
niches and exploit them.”
For example? The Building Code is changing requirements for
the building industry,” he confides.
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“Built into the Code is a fire rating requirement, particularly
for hospitals, hotels, motels; wherever you have large numbers
of people gathering. Some of these building codes are ahead of
what paints are available.”
Which is why Cotec has obtained the NZ agency for a brand
of fire retardant paints called Firefree (www.firefree.com). Says
Wright: “These products actually meet the new Building Code
requirements.”
ANOTHER PLAYER, ANOTHER NICHE
Another local paint company that is expert at ferreting out
specialist markets is PaintPlus. We spoke with Director, John
Warman who has had a very good 2015, “because we developed
new products that appealed to niche markets that don’t have a
lot of competition.
“We develop products that replace imported products, so
we’re not affecting New Zealand players. The film industry for
example is a big niche market for us. We provide 80% of all the
paint used in the Australasian film industry. It’s feast or famine.
When it’s on, it’s full on. When it’s not, it’s cold.
“We provide green screen and one-off colours. We work very
24
NZHJ | FEBRUARY 2016
closely with the people who do the painting and some have
become personal friends. We worked on Avatar and we had to
remain tight-lipped about that.
“There are three Avatar movies that are going to be filmed
soon and produced back-to-back, so when we get the call it’s
going to get very busy. We work directly with scenic artists.
There are a lot of movies in pre-production right now. I can say
it’s going to be busier this year than last.”
We ask Warman about new products in the pipeline. You can
tell from his almost glib response he’s been asked this before:
“Think niche and think global! We’re pretty secretive about our
new products because we like being under the radar. These
products will have enormous appeal offshore.
“I have a green bent. We’re the only paint company in
the world who is carbon neutral. When we started making
environmentally friendly paint it wasn’t fashionable. All our
paints are eco labelled and we are carbon neutral, so that’s our
point of difference.
“Carbon neutral is about the company and eco labelling is
about the product. We’re audited annually by carbon zero and
bi-annually by environmental choice. It’s no walk in the park.
“New Zealand makes great paint. I’ve recently been to the UK
and they make rubbish paint. You wouldn’t sell it here or only
once. I’m very positive about our year ahead. I can’t wait.”
WHAT ABOUT THE ADD-ONS?
And what about paint accessories? How did they fare in 2015
and are they optimistic for the year ahead? We asked PAL, New
Zealand’s biggest accessories manufacturer.
PAL’s Richard Percy responds: “2015 was very good for PAL.
Both retail and trade had a good year. The paint market as a
whole has undergone big changes in 2015 at a retail level so our
business reflected that.
“If you hold your breath you die. More and more our market is
changing to supplying unique products to unique channels. The
big boxes are getting bigger and more dominant but is the paint
market getting bigger? In my opinion, probably not. What that
means is that the independents are getting squeezed.
“In dollar terms we’re 60% retail and 40% trade. We don’t see
this changing. We are the dominant player in NZ and we’re
determined to stay that way.”
As I make my way back to base in the city, mentally
preparing for the inevitable motorway gridlock, I recap my
store visits.
Adding another quality paint to the market hasn’t seemed
to effect the other players too much. Dulux appears to have
suffered the most, first by no longer having access to Mitre10’s
and secondly because they are now forced to promote more
heavily at a local trade level and at a national level with more
advertising.
Meanwhile, the smaller independent paint companies have
got smarter. They’re zigging when the 3 big players are busy
zagging…they’re finding or developing new products for new
markets. The paint channel is doing well but by god it’s not
getting any easier. Roll on the dry months.
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painting & decorating
Talking with the “master painter”
AS THE OLD Firestone jingle used to say, it’s where
the rubber hits the road that really counts. For
the paint industry, it’s where the bristles hit the
weatherboard that counts.
Who better to share his insights on the
professional painters wielding the brush, roller or
spray gun than Brian Miller, CEO of the Master
Painters NZ Association (MPNZA)?
How was 2015 for the paint
professional?
It’s been a mixed year. For example, many of our members had a
tough winter. The 2015 winter was long, longer than it’s been for a
while. A substantial part of contract work is exterior painting and
the southern regions found it a particularly challenging time.
In the last quarter of 2015 the market lifted significantly across
most of NZ.
In contrast, Christchurch painting contracts actually dropped
right back because the bulk of the EQR work has been done.
What that effectively means is the bulk of the ‘rework’ won’t be
available for up to 10 years or as properties change hands.
The commercial work in Christchurch has not flowed at the
anticipated level – yet. There’s a lot of framing going up, which
means it will come in due course, but the painter is at the end of
26
NZHJ | FEBRUARY 2016
the trade gang, so it will be months and years before
it makes a difference. There are some reasonably big
projects happening right now in other parts of the
South Island, especially in Central Otago.
Where are the regional hot spots for
the paint trade right now?
First of all, a good painter will always have work,
wherever they are and whatever the weather or
marketplace is doing. That said, and no surprise,
Auckland is going off the dial. There’s $5 billion
worth of construction in the CBD and massive developments
everywhere around the region.
Auckland’s biggest downfall is its own success. Surplus
tradespeople available now in other parts of New Zealand
cannot afford to relocate and live in Auckland. It’s too expensive
to live there. Immigrants have a similar problem, the cost of
accommodation and living in Auckland precludes many from
working there.
Central Otago is another place where you can’t get a painting
contractor for love nor money. Because it’s such a popular
tourist destination year-round, unless you’re a local you can’t
afford to live there either and they’re screaming out for painters.
If you had a pulse and a driver’s licence they would give you work.
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advertising feature
Acme and Henkel:
Bonding over excellence
H
enkel, established in 1876, and today recognised as the
global market leader in Adhesive and Sealant Technologies
has appointed Acme Supplies Limited as the New Zealand
distributor of their consumer adhesives range. These household
and industry-standard brands include Sellotape, Loctite, Thomsit,
Pritt, Inseal, Metylan and more.
As Acme National Sales Manager Jonathan Skelton (pictured
right) explains, “Henkel’s approach to business is summed up with
their Mission Statement, ‘Excellence is our passion’. It’s why they
invest more than any other company in R&D, why their brands are
market leaders and why their distribution partners are carefully
chosen for their excellent reputation and service.
“Acme has the same business model today,” continues Skelton,
“that we’ve faithfully followed for 45 years. To consistently provide
our partners and their brands with the best retail representation,
build lasting personal relationships with retailers and to have
a high call frequency that includes our own shelf stocking and
merchandising, so stock is always at its best. It’s also important
to our retailer customers that we only sell to them, so unlike some
other distributors, we don’t sell direct to the end consumer.”
“To achieve the market penetration they seek, it was important to
Henkel that our relationships and our coverage span the group
buyers at the largest retail hardware chains, right down to the
smallest independent hardware store owner.
“With six dedicated area representatives constantly calling on
Hardware retailers in all regions nationwide,” Skelton enthuses,
“Henkel sees Acme as the conduit to take their brands from niche
professional to mass market. They want us to get their brands
out there!
“Roofers and plumbers already depend on Loctite’s sealant
products. Tilers love Thomsit which poured onto concrete gives a
level floor prior to tiling, and Inseal, an adhesive foam sold in rolls
of different density and width, effectively seals gaps in doors and
windows. These are fabulous products. We’re very fortunate to
have them.” ■
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FEBRUARY 2016 | NZHJ
27
painting & decorating
How easy or difficult is it to start a business as a
professional painter?
Starting your own paint contracting business catering to the
residential market is not a big step. Unlike other businesses,
there’s no big plant or equipment outlay, you can be a sole trader
and contract hire help when you need it.
Typically you’re working directly for the home owner. Your
terms of trade are usually simple – you get paid as you walk out
the door.
Starting a commercial paint contracting business is another
story. Working with the big boys is a different game. Your
compliance expectations are much higher and timelines are
incredibly tight.
Normally a construction firm is the site manager you’re
dealing with. Those big boys don’t suffer fools on sites. They’re
skilled at what they do, they expect performance and you have
to deliver.
On those big sites they take no prisoners and rightly so – it’s a
hard environment, they’re on tight time lines so you really need
a good degree of commercial nous and commercial acumen to
make it in that environment.
Another real challenge going from a small residential
SME to a commercial contractor is the payment regimes are
quite different. The home owner is a lot swifter in making
payments, whereas in the commercial world you’re dealing with
commercial terms that are outlined in the contract, so you need
sufficient financial reserves behind you to deal with that.
Anyone who’s around greater Auckland’s many
large building or private residential sites may
have noticed quite a few teams of “recent
arrivals” onsite. Do you see them as a problem?
Absolutely! They’re a major issue for us because our members
are meeting compliance requirements, particularly around
health & safety, but some of these painting contractors are not.
They’re blatantly ignoring health & safety requirements. I tell
you, it’s like the Wild West.
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28
NZHJ | FEBRUARY 2016
Who is the biggest paint brand with the trade?
It would be fair to say by volume Resene are the biggest right
now. That’s primarily because our members tend to use what
is specified. So it gets down to designer, project manager or
home owner preference. Most of our members have trade
accounts with all the “big three”. If consumers say we want
Resene or we want Dulux, the wise contractor adheres to
their wishes.
All the major brands are supplying some of the best paints
in the world. Cotec and ColourPlus make great paint too.
What’s your opinion of the new health & safety
regime?
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Our members price to do the work efficiently, but safely,
and there is a cost to doing that. I personally wouldn’t
want the consequence of an accident on my home. That’s
something that home owners need to think about.
The new law applies to the contractors coming on to the
property. Whoever is managing the project is the “duty of
care officer”. If you want to self-manage that project with all
those subbies you need to ascertain if you have “duty of care”
responsibility. If you do, you are responsible for any accident
or mishap.
A good example was a church I was working on. They
wanted to pay for the scaffold erection themselves. In that
scenario they would have had a “duty of care” to everyone
who came on to that scaffold. If they’d had a professional
project manager or a builder that would be his responsibility.
The paint trade is an unregulated minefield. I’ve seen noncompliant painters quote $1800 for a roof paint when the
scaffolding alone would cost that much. The paint is another
$800, so the owner gets a one coat lick on their roof.
The best thing for us is to have WorkSafe actively
inspecting and very visible, in the residential sector in
particular.
My advice to anyone considering employing paint
contractors is be careful. Research your tradies, check their
backgrounds. There are a lot of brokers who put on a public
front on websites and their ethics are questionable.
My summary of the new Act is this: doing nothing is no
longer an option! No matter if you’re a sole trader or run a
hundred staff, you are now more accountable.
Dulux have just signed off on sponsoring a huge health &
safety package, compliant with the new Act, to our entire
membership at no charge. That’s a huge sponsorship and
we’re very grateful!
Part of my role is to lobby Government. I’m lobbying
right now to introduce licencing. We deal with Building &
Housing. With Government you deal with the unforeseen
consequences of what they write and our job is to put that
into effect. It’s a war zone. It’s fun!
What I want is for my members to have a good business
and get home safely at the end of every day.
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painting & decorating
Look through rose glasses and she’ll
be white – colour trends for 2016
DEAR READER, TAKE a moment to get in touch with your inner self
before reading this colour side bar. It’s time to get soft and gooey.
COLOUR ME TOUCHY FEELY
For the first time the colour experts at Pantone, whose
influences range far beyond the colour of your bedroom, have
chosen not one but two colours as the Colour of 2016.
These shades blended together, they insist, will help us, seek
mindfulness and well-being as an antidote to modern day
stresses. These welcoming colours psychologically fulfil our
yearning for reassurance and security.
Joined together, Rose Quartz and Serenity demonstrate an
inherent balance between a warmer embracing rose tone and
the cooler tranquil blue, reflecting connection and wellness as
CRACK REPAIR
DUNLOP provides the latest innovations in concrete crack filler and spall repair
technology. DUNLOP Ardit Crack Filler is a fast setting low viscosity polyurethane
that is trafficable in just 20 minutes. DUNLOP Builder’s Bond is a rapid curing
epoxy bonding and repair solution that sets stronger than concrete in 2 hours.
30
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NZHJ | FEBRUARY 2016
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painting & decorating
well as a soothing sense of order and peace.
Whatever. Just expect to see these colours on catwalks and
the tongues of interior designers as they spend their well-heeled
clients’ money.
ABOUT WHITE SUPREMACY
America’s largest paint company, Benjamin Moore, has named
Simply White OC-117 as its Colour of the Year, a choice that
lit up social media late last year with designers and Joe Public
openly criticising the choice.
Benjamin’s Colour & Design Director, Priscilla Ghaznavi,
explains the company chose this colour after 10 months of
research and having looked at over 250 whites in its catalogue
before choosing Simply White as “the most neutral and constant
white when exposed to various light sources”.
Ghaznavi further says: “It helps us appreciate the form
and shape of an object and it defines a space in a beautiful
and sophisticated way. Simply White accepts and embraces
Contact us
WANT TO
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U
O
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K
L
TA
Note ou
r phone & address details
Phone 09 375 3097
83 Mt Eden Road, Lower Level
Grafton, Auckland 1023
PO Box 28372 Remuera, Auckland, 1541, NZ
Steve Bohling
GROUP EDITOR
[email protected]
ddi 09 304 2705 | mob 021 0223 6887
Jess Brunette
STAFF WRITER
[email protected]
ddi 09 304 2704
Terry Herbert
STAFF WRITER
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painting & decorating
anything you put next to it.”
Me, I’m just going to get that large white canvas I’ve had in the
garage for years meaning to paint and whack it straight on the wall.
RICE CAKE ANYONE?
Closer to home we asked Resene Colour Consultant Sarah
Gregory about her colour trends for 2016.
“The exterior colour trend for 2016 is white on white. Very
clean whites. Often you’ll just see all white but sometimes white
with a little black for window trims.
“Grey and white have been around now for the last few years
but this year we’ll definitely be moving more into the whites.
That said grey and white is still very popular.
“Looking at interior colour trends, white interiors are still
popular. Whites that have quite a lot of black and grey in them
which can be quite a sterile look were on trend.
“What the new trend now is warmer whites such as our Rice
Cake which has got a little bit of a yellow undertone which just
warms it up a little and Merino is really popular as well.
“And if we look at colour what is popular now is a soft duck
egg blue. It’s not a cold blue, it has a magenta through it which
makes it a warm blue. The further south you live the more you’ll
see a tendency toward warmer interior colours, particularly in
the South island.
“The other trends are greys used internally. It sounds boring
but it’s not because you can highlight it. The biggest on trend
colour combination is grey and yellow. Grey walls and yellow
accessories like pillows and lamps.
“Jungle greens, bright greens and deep greens will be on trend
– not the citrus greens that we’ve had before. Nature-based
greens are really in too. Along with greens there are also inky
blues and what we call sorbet colours or pastels. Sorbet colours
like peach and pink soft yellow.”
PICK A COLOUR, ANY COLOUR…
Gretchen Flynn, Specifications Manager at Laminex, has the
final word on interior colour trends for 2016.
She says to expect a range of greens, terracottas and blues.
Meanwhile red is being reinvented to more of a soft raspberry.
Every now and again a yellow highlight comes through. Black
will be used to frame a colour.
Your neutrals go on hard surfaces like walls and bench tops
and then you use these colours for an accent or on accessories.
Overall we can expect more soft whites and more soft shades
and pastels.
Group hug anyone?
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OUTSTANDING IN THEIR FIELD
If you’re planning on watching the rugby this season (Feb-July) or going to any of the home games, keep an eye out for Bostik at
your favourite stadium. We’ll be there because our smart adhesives are a winning combination – the best in their field.
Bostik is a global brand with a large local footprint. For more than 125 years, tradies and DIYers have relied on Bostik adhesives
and sealants. Our super range of winners is always on your side. Now that’s something to shout about!
Visit www.bostik.co.nz or phone 0508 222 272 for more information.
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